Endowment Weekly Reports

🗳️ Meta-Governance Treasury Management
1

We are pleased to announce the launch of the Endowment reporting section following the successful execution of [EP3.4] Fund the Endowment (first tranche) and the receipt of 16,000 ETH for the Endowment.

Report Sections

Each week, on Mondays, we will post a link to a PDF file containing the latest report, which will

include the following sections:

  1. Portfolio Summary
  2. Revenues
  3. Positions
  4. Portfolio

Weekly Operational Report

Our weekly report will focus on the operational side while @steakhouse will provide global financial reporting through their monthly reports. Karpatkey is currently working on an online reporting solution with live dashboards. In the meantime, we will provide periodic reports that will act as weekly snapshots in PDF format. To keep the forum uncluttered, each new report will be added as a comment to this post.

It is customary for Karpatkey to create reports for every DAO we collaborate with on Mondays. Last week was no exception, so the first ENS report was created. However, it was not published on the forum due to the fact that the execution of the strategy had barely started so there was not enough information to share. All in all, in order to keep all the information organized and transparent, we provide links to the two reports that were created so far.

Endowment report - 1st week: Link to PDF

Endowment report - 2nd week: Link to PDF

Managed wallet (Endowment): Link to Etherscan

Execution Update

As outlined in the Endowment initiation post, we executed the first scheduled actions on March 8th. For a detailed breakdown of each week’s specific actions, please refer to the Strategy Overview section in our weekly reports.

Last week, we continued with our intended strategies but made the decision to put the Stakewise v2 strategy on hold for a specific reason. Stakewise is preparing to launch their v3 version, which will introduce new and exciting features, but will also make significant changes to the protocol. While we wait for this event, we will stake the ETH portion assigned to this strategy on Lido, improving our capital efficiency.

Additional comments on exceptional market events

The first week of the Endowment was marked by unprecedented events, with breaking news about problems with SVB bank and potential implications for Circle, the issuer of USDC, emerging towards the end of the week. Thanks to our alert systems, we quickly identified abnormal on-chain activity.

After extensive analysis and internal discussions, we decided not to take further action unless new meaningful information came to light. We communicated our strategy to relevant stakeholders from different DAOs we partner with and continued to carefully monitor the events and market evolution.

16 Likes
2

Hello ENS Community, This is karpatkey’s report for the last week of the Endowment: Link to PDF

8 Likes
3

Hello ENS Community,

This is karpatkey’s report for the last week of the Endowment: Link to PDF

5 Likes
4

Hi everyone,

This is karpatkey’s report for the last week of the Endowment: Link to PDF

7 Likes
5

Hello ENS Community,

On this link you will find relevant information from the weekly report (total amount treasury, weekly revenues, average APR) as well as information about karpatkey’s corresponding fees (management and performance fee) for those periods.

Fees should be deposited on a monthly basis on the first 15 days of the following month in the following ethereum address 0x58e6c7ab55Aa9012eAccA16d1ED4c15795669E1C

Fee payments will be handled by the Meta-Gov Working Group (@kwuuuz, @nicksdjohnson, @Sim_Pop) and Secretary (@Coltron1) from the ens-endowmentfees.pod.xyz multisig. Tx Hash links will be shared in the same link.

8 Likes
6

Hi everyone,

This is karpatkey’s report for the last week of the Endowment: Link to PDF

8 Likes
7

Hi everyone,

This is karpatkey’s report for the last week of the Endowment: Link to PDF

5 Likes
8

Hi everyone,

This is karpatkey’s report for the last week of the Endowment: Link to PDF

4 Likes
9

Hi everyone,

This is karpatkey’s report for the last week of the Endowment: Link to PDF

9 Likes
10

Hi everyone,

This is karpatkey’s report for the last week of the Endowment: Link to PDF

2 Likes
11

I want to clarify that I am reading this report correctly.
I am interpreting that $29,000,000 is only returning ~$20,000 dollars per week?

If we are streaming $11,500 per day to ENS Labs, that would require 52 weeks of this endowment to fund only 104 days of operational costs for ENS Labs.

At this rate it would take 9.5 years of this endowment to sustain 1 year of runway for operational costs of ENS LABS.

please correct me if I am misinterpreting.

1 Like
12

Hey @accessor.eth, you are interpreting the numbers correctly. However, the Endowment’s objective was always about diversifying ENS’ treasury and generating long-term and sustainable yield. Whether it’s enough to fully cover operational expenses—it’s a function of multiple exogenous variables e.g. market prices/volume/liquidity—which we don’t control.

There are also other factors to consider:

  • The return of ~$20,000 per week is based on the current size of the Endowment, which is operating at 50% of its intended capacity, and set according to E.P. 3.4.

  • The ongoing strategies were carefully selected to align with the long-term goals of the endowment and were validated by the ENS community through a vote. To be able to ultimately sustain the operational costs of ENS Labs, the full-sized Endowment (~$60M at current market prices) would need to be able to generate ~7% Gross APR, which cannot be attained in the current market conditions without incurring extra risk. Enlarging the Endowment could be a possibility to meet the goal, but that’s outside the scope of the current stage and should be left for future discussion.

  • We are actively working on a new proposal to introduce additional strategies for approval by the DAO. These strategies were initially outlined in the proposal that led to the selection of karpatkey as the Endowment Manager, demonstrating consistent adherence to the original plan. The details of the new proposal will be shared on the forum shortly.

6 Likes
13

Hi everyone,

This is karpatkey’s report for the last week of the Endowment: Link to PDF

4 Likes
14

Hi everyone,

This is karpatkey’s report for the last week of the Endowment: Link to PDF

2 Likes
15

Hi everyone,

This is karpatkey’s report for the last week of the Endowment: Link to PDF

1 Like
16

Hi everyone,

This is karpatkey’s report for the last week of the Endowment: Link to PDF

3 Likes
17

Hi everyone,

This is karpatkey’s report for the last week of the Endowment: Link to PDF

2 Likes
18

Hi everyone,

This is karpatkey’s report for the last week of the Endowment: Link to PDF

19

Starting from July 2023, we are excited to introduce monthly reports, offering valuable insights into the Endowment’s performance. You can access the new thread for these reports here.

2 Likes